It seems that recently the way how database should be integrated for the use of the Openfire XMPP server, has changed. The config file needs to have the additional settings but after they also need to be hand edited at the server settings page of the admin panel, thus the configuration file becomes like one below:

<?xml version="1.0" encoding="UTF-8"?>

<jive>
  <adminConsole>
    <port>9090</port>
    <securePort>9091</securePort>
  </adminConsole>
  <admin></admin>
  <locale>en</locale>
  <provider>
    <auth/>
    <user/>
    <group></group>
  </provider>
  <jdbcProvider/>
  <jdbcAuthProvider/>
  <jdbcUserProvider/>
  <jdbcGroupProvider></jdbcGroupProvider>
  <log>
    <debug>
      <enabled>true</enabled>
    </debug>
  </log>
  <connectionProvider>
    <className>org.jivesoftware.database.DefaultConnectionProvider</className>
  </connectionProvider>
  <database>
    <defaultProvider>
      <driver>com.mysql.jdbc.Driver</driver>
      <serverURL>jdbc:mysql://localhost:3306/openfire?useUnicode=true&;characterEncoding=UTF-8&;characterSetResults=UTF-8</serverURL>
      <username>openfire</username>
      <password>openfire</password>
      <testSQL>select 1</testSQL>
      <testBeforeUse>true</testBeforeUse>
      <testAfterUse>true</testAfterUse>
      <minConnections>5</minConnections>
      <maxConnections>25</maxConnections>
      <connectionTimeout>1.0</connectionTimeout>
    </defaultProvider>
  </database>
  <setup>true</setup>
</jive>

The database properties are set to the following:

ofProperty values

name	propValue
admin.authorizedJIDs	juga@paazmaya.fi
jdbcAuthProvider.passwordSQL	SELECT password FROM users WHERE nickname = ? LIMIT 1
jdbcAuthProvider.passwordType	sha1
jdbcGroupProvider.allGroupsSQL	SELECT title FROM groups ORDER BY title ASC
jdbcGroupProvider.descriptionSQL	SELECT description FROM groups WHERE title = ?
jdbcGroupProvider.groupCountSQL	SELECT COUNT(*) FROM groups
jdbcGroupProvider.loadMembersSQL	SELECT A.nickname FROM users A, group_user B, groups C WHERE C.title = ? AND A.id = B.user AND B.group = C.id
jdbcGroupProvider.userGroupsSQL	SELECT A.title FROM groups A, group_user B, users C WHERE A.id = B.group AND B.user = C.id AND C.nickname = ?
jdbcProvider.connectionString	jdbc:mysql://localhost:3306/tsuka_beta?user=tsuka_beta&password=tsuka_beta
jdbcProvider.driver	com.mysql.jdbc.Driver
jdbcUserProvider.allUsersSQL	SELECT nickname FROM users ORDER BY nickname ASC
jdbcUserProvider.emailField	email
jdbcUserProvider.loadUserSQL	SELECT nickname, email FROM users WHERE nickname = ? LIMIT 1
jdbcUserProvider.nameField	nickname
jdbcUserProvider.searchSQL	SELECT nickname FROM users WHERE
jdbcUserProvider.userCountSQL	SELECT COUNT(*) FROM users
jdbcUserProvider.usernameField	nickname
provider.admin.className	org.jivesoftware.openfire.admin.DefaultAdminProvider
provider.auth.className	org.jivesoftware.openfire.auth.JDBCAuthProvider
provider.group.className	org.jivesoftware.openfire.group.JDBCGroupProvider
provider.lockout.className	org.jivesoftware.openfire.lockout.DefaultLockOutProvider
provider.securityAudit.className	org.jivesoftware.openfire.security.DefaultSecurityAuditProvider
provider.user.className	org.jivesoftware.openfire.user.JDBCUserProvider
provider.vcard.className	org.jivesoftware.openfire.vcard.DefaultVCardProvider
xmpp.domain	paazmaya.fi

Remember to make sure that the domain of the admin user matches to the domain of the server.